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Understanding
Poverty
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October 2001. The Population Commission (Popcom)
said there are 30.6 million Filipinos or 6.12 million families who are
suffering from poverty. When I learned about this, I took consolation
with the notion that I am not alone, yet I felt dismayed over the complacency
of our national government officials who seem undisturbed by the fact
that 40 percent of their constituents live below the poverty line throughout
the country's 78 provinces, 84 cities or 41,940 barangays. How can they
sit back and relax?
There are about 77 million Filipinos today, and this number is growing
by 2.05 percent annually. This means that some 1.5 million Filipinos
are born every year, 600,000 of whom to poor parents. Some 32.5 million
Filipinos, comprising 66.3 percent of the population, are considered
matured enough to work. But 3.3 million of these people, or 10.1 percent
of the workforce, cannot find jobs while 5.2 million others, or 17.7
percent, have no regular source of income.
By international standards, these are critical problems. The Taiwanese
government is in the brink of panic, because the unemployment rate in
that country just north of Luzon is threatening to hit 5 percent, year-on-year.
Yet, our Filipino government officials are sitting relaxed inside posh
restaurants and five-star hotels, as 8.5 million Filipinos or 28 percent
of the workforce are trying to figure out where to source the next meal
for their families.
According to the World Bank, the Philippines had a per capita GNP of
US$1,050 in 1999, compared to China's US$780, Indonesia's US$600, Vietnam's
US$370, Lao's US$290 or Cambodia's US$280. Yet, the Philippines' poverty
incidence rate of 40 percent is higher than China's 3 percent, Indonesia's
23 percent, Vietnam's 37 percent, Lao's 38 percent or Cambodia's 36
percent. Why is that? Wealth in the Philippines is concentrated on the
hands of the few, that's why. It is the World Bank, and not the NDF,
which gave such explanation.
Now consider this, the prestigious Forbes magazine has included at least
five Filipinos in the list of world billionaires (US dollars). Let us
rejoice! Imagine, highly industrial and welfare states like France,
Finland, the Netherlands, Norway and Sweden do not have a single representative
to the billionaires' circle.
Among Southeast Asian countries, poverty incidence is most extreme in
the Philippines where some 15.3 million Filipinos (half of the poor
population) wake up every morning without food on the table. These people
are called subsistence individuals or whose income cannot provide for
basic food requirements. Popcom's data is even conservative because
in its interpretation, a family of six earning a total of P72,000 a
year is not considered poor. In contrast, a study conducted by the National
Wages and Productivity Commission (NWPC) pegged the minimum income that
a family of six must earn annually at P191,874 in order to live decently
in Metro Manila.
The labor sector has been demanding for a P125 daily wage hike or 50
percent of the current level but the group of employers claimed that
such wage adjustment would force many establishments out of business.
Listening more to the rhetoric of the rich rather than to the howl of
the poor, the Regional Tripartite Wage Board has approved only a P30
daily wage increase in the metropolis. The Department of Trade and Industry
(DTI) event want us to believe that the previous minimum daily wage
of US$5 (P250) in Manila is much higher than China's US$1. Ironically,
the Philippines reported a poverty incidence rate of 40 percent, much
higher than China's 3 percent.
What makes things more difficult for us is the high prices of commodities.
The country's inflation rate, estimated at 6 to 7 percent annually,
is the highest in Asia. Japan, a super rich country, is ironically having
a deflation.
Let us make some computation. A person who is covered by the minimum
wage would not take home P250 a day. Most likely, the wage, after tax
and pension deductions, on top of travel and meal expenses, would amount
to something like P150. A person who passes by a fastfood center, which
is not in anyway a luxurious restaurant, might spend at least P50, or
33 percent of his take-home income on a roll of rice and a fried chicken
wing. That explains his purchasing power. Imagine spending all of your
daily income in just three meals at an inexpensive restaurant. Food
is supposed to account for less than 20 percent of a man's expenses.
While it might be true that a P125 daily wage adjustment will be bad
for business (the Central Banks warned it would push inflation rate
to 18 percent), this might be the only option that the poor has against
poverty. Unless the government can do something like bringing the prices
of food and other basic commodities, there is no other recourse but
to increase the poor's purchasing power. The government needs to do
its own computation, and put some system in managing the affairs of
the nation.
Sadly, it seems that our government officials haven't learned anything
from the past. Only last year, about 500 people were killed when a 50-meter
pile of garbage collapsed on their makeshift houses in a dumpsite in
Quezon City. This was the absolute face of poverty, whose image failed
to instill understanding among our numb leaders. Now, who could blame
the 20,000 protesters who stormed to Malacanang Palace last May 1. The
people in the media, who were not even aware on what the attack was
about, had the guts to brand these protesters a mob of poor and undisciplined
warriors.
It also seems that the current crop of leaders have nothing to offer,
and one opposition senator even admitted that in 30 years, the Philippines
will not even reach the level of Thailand, which I understand, is still
a poor country. This is anything but encouraging. Imagine spending the
next 30 years of your life in poverty (if the tension in Central Asia
does not lead into another world war, of course). We wait for a day
that one leader will rise to change our mindset and status in life.
Someone who will promise to turn the Philippines into a country of mostly
rich people in his lifetime and can convince us that he really can.
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